Gaithersburg – November 05, 2026 -- Novavax raised its full-year 2026 Non-GAAP Adjusted Total Revenue guidance by $145 million to $400 million at the mid-point, after earning a $125 million milestone from partner Sanofi and cutting its quarterly net loss to $31 million from $202 million a year earlier.
Sanofi's European Phase 3 start triggers $125 million payment
Novavax earned the payment in October, when Sanofi initiated a Phase 3 trial of its influenza-COVID-19 combination (CIC) vaccine in Europe. Sanofi has confirmed it intends to start a U.S. Phase 3 CIC trial in 2027 to support U.S. approval.
Novavax is eligible for a further $225 million milestone on the first U.S. commercial sale of a CIC product, once Sanofi completes clinical and FDA requirements. It would also receive royalties from the high single digits to sub-teens on Sanofi's global net sales of CIC products. A $75 million milestone is tied to completing the Nuvaxovid manufacturing technology transfer to Sanofi, expected in mid-2027.
Third-quarter revenue slips 3% to $68 million as R&D reimbursements fall
Revenue compared with $70 million in the third quarter of 2025. Product sales rose 91% to $26 million, covering Nuvaxovid supply to Sanofi and Matrix-M supply to license partners. Licensing, royalties and other revenue fell 25% to $43 million, driven by a $42 million year-over-year drop in R&D reimbursement revenue as Novavax nears completion of its Nuvaxovid clinical support for Sanofi. The quarter includes $11 million in non-cash deferred royalty recognition tied to earlier Nuvaxovid sales by SK bioscience to the South Korean government.
Operating costs drop as Sanofi takes over commercial lead
R&D expenses fell to $52 million from $98 million; GAAP and Non-GAAP R&D declined 47% and 7%, respectively. SG&A decreased 25% to $24 million from $32 million, reflecting the transfer of lead commercial activities to Sanofi and the elimination of commercial infrastructure. Cost of sales rose to $23 million from $21 million. Novavax also improved its GAAP Combined R&D and SG&A expense guidance by $5 million at the mid-point.
Cash, cash equivalents, marketable securities and restricted cash totaled $627 million at September 30, 2026, down from $751 million at December 31, 2025.
Partners launch the 2026-2027 COVID-19 season with XFG-adapted Nuvaxovid
Commercial partners received approvals in August for the XFG-adapted Nuvaxovid formulation in the U.S., the EU and Japan. Sanofi started commercial activities in the U.S. and select international markets, and Takeda did so in Japan. Novavax is eligible for royalties in the high teens to low twenties percent of Sanofi's global Nuvaxovid net sales. From Takeda it is eligible for an annual milestone and a mid-to-high teens percentage of net sales in Japan.
These Sanofi-dependent revenue components, including supply sales, royalties and milestones, are excluded from the full-year revenue framework because Novavax relies on Sanofi's sales forecasts.
C. difficile vaccine could enter the clinic as early as 2027
Novavax presented preclinical data in September at the 9th International C. Difficile Symposium showing robust immune responses and protection in lethal challenge models. Evaluations of Matrix-M across infectious disease targets and oncology models are underway with partners and through material transfer agreements. For each new Matrix-M vaccine, Novavax is eligible for up to $200 million in launch and sales milestones plus mid-single-digit royalties for 20 years.
CEO John C. Jacobs said the company is continuing to reduce expenses and operate with financial discipline while pursuing a diversified, partner-led revenue base.